A recent Bloomberg report indicated that many Germans are not sold on the idea of using the digital euro. The primary concern is privacy.
Bloomberg Poll
According to a Bloomberg report published on August 17, 2024, the general public in Germany is mainly concerned about the safety of their personal data. Germans prefer cash due to fears about their privacy.
What is the Digital Euro?
The EU is set to decide whether it should move forward with implementing the digital euro next year. The digital euro is supposed to offer the highest level of privacy among available electronic payment options. Both online and offline versions are expected to be supported within a single app. Users would not be directly linked to their payments since their data would be pseudonymized. The digital euro will rely on various privacy-enhancing technologies.
Global Practice with Central Bank Digital Currencies
Currently, roughly 134 countries are looking into central bank digital currencies (CBDCs). In June, the Bank of Israel stated that it would not rush to decide on the digital shekel before the EU makes its decision. The much-talked-about digital euro project entered into the 'preparation' phase in October.
The digital euro aims to provide a high level of privacy and data protection. However, the concerns from German residents highlight the need for a careful approach to its implementation.
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